| November
8 , 2000 Manitoba motorists to share full $75 million one-time dividend 750,000 vehicle owners save an average of about $91 across province Manitoba Public Insurance today announced it is amending its application to the Public Utilities Board to increase a one-time dividend to all 2001 basic Autopac policies from 10 per cent to 16.6 per cent. The $75 million one-time dividend represents an average saving of about $91 to owners of more than 750,000 vehicles across Manitoba. Owners in every region of the province and of every type of vehicle class will benefit from the higher one-time dividend. "We heard what Manitobans said and we listened," said MPI President and CEO Jack Zacharias. "Manitobans told us that they felt surplus funds should be returned to ratepayers. In accordance with their wishes, we have amended our rate application currently before the PUB. "This means more than 99 per cent of private passenger vehicle owners will pay less for their vehicle insurance next year if our application is approved by the PUB." If approved, the one-time 16.6 per cent surplus dividend will be applied to individual vehicle insurance policies beginning March 1, 2001. Because of individual policy renewal and purchase dates, some customers will not see the change on their policies until February, 2002. While the dividend will be applied to all policies, individual vehicle premiums will decrease or increase depending upon factors such as driving and claims records, the make and model of the vehicle, how it is used and where the driver lives. Zacharias noted that this year's one-time dividend is a continuation of the Corporation's efforts to reduce the amount that Manitobans pay for automobile insurance coverage. Since 1999, MPI has reduced the cost of automobile insurance by 22.6 per cent -- leaving $100 million in the pockets of vehicle owners if this change is approved by PUB. The decision to respond to wishes expressed by Manitobans and increase the one-time dividend to 16.6 per cent means the Corporation will not contribute $20 million to three Manitoba universities, as previously announced. MPI will also use the $10 million, earlier earmarked for systems improvements at the Division of Driver and Vehicle Licensing, to increase the value of the one-time dividend to $75 million. In its PUB application, the Corporation is also proposing to recognize long-term safe drivers by allowing motorists with six or more years without an at-fault accident to keep their 25 per cent merit discount should they cause an accident. A one-time accident surcharge that is lower than the loss of a premium discount, will apply. Also, as previously announced, MPI is introducing seasonal motorcycle rates and a rating system that more fairly reflects risk and claims costs associated with various classes of motorcycles. PUB hearings are scheduled to continue throughout the week. A ruling is expected in December.
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